Legal costs weigh on Sun International’s profit

South Africa-based casino operator Sun International ekes out a 15 percent revenue increase for the full-year ending in June, despite incurring a R503 million (US$ 34.86 million) losses due to purchasing costs and legal settlements.

Sun’s overall revenue rose to R12 billion (US$831.56 million) in the year, thanks to its Latin American casinos, which saw its revenues surge by 40 percent to R2.45 billion (US$ 169.78 million), according to Business Day.

In June, relevant gambling regulators in Latin America has approved the merger of Sun and Chile-based gaming and entertainment firm Dream SA. Dreams portfolio includes six casinos in Chile — Iquique, Temuco, Valdivia, Puerto Varas, Coyhaique, Punta Arenas — and four in Peru, which are all in Lima.

Sun pointed out that its Chilean casinos has already bounced back from a smoking ban implemented in 2013, posting a 6.6 percent and 15 percent revenue and earnings before interest‚ tax‚ depreciation and amortization (EBITDA) growths, respectively.